Search Fund Formations Data

PIPELINE PULSE SPECIAL REPORT

A New Peak in Launches for 2022

I recently released a video analyzing new data from my colleagues, Mark and Luke at Searchfunder. In private discussions, professors and investors familiar with the data tell me that this crowdsourced information offers the most complete and comprehensive view of the ecosystem. The data is agnostic as to the financing model used for the search fund. It includes the Stanford traditional model, self-funded and accelerators/incubators and others.

However, there are some caveats to consider when using crowdsourced data. For instance, searchers vary on when they state their search fund’s launch. Some individuals may declare their launch once they’ve made a personal commitment to the process. Others might wait until they have completed the legal paperwork for organization. Still, others may delay their declaration until they’ve secured the majority, or all, of their funding commitments. For searchers, the duration of these activities can span from 6 months to a year, or even longer.

In the video, I highlight:

  • A chart showing search fund formations from the mid-1980s through 2022, revealing a notable acceleration starting in the 2010s. Despite a dip in 2021, possibly attributed to the pandemic or rising interest rates, 2022 emerged as a historic peak year for search fund formations.
  • Early data for 2023 suggests a continued increase in search fund formations, hinting at another historic peak year. This prediction is supported by the growing interest from investors, active engagement from MBA students, and record attendance at ETA conferences.

Next, I plan to delve into data on acquisitions and possibly regional differences.

Please support these Pipeline Pulse special reports by Liking, Commenting and Subscribing to our YouTube channel.